Millennials Encouraged to Save, Not Invest, PNC Survey Finds
PITTSBURGH – A survey from PNC Investments found that millennials largely don’t feel confident in saving for the future and more than half don’t have an emergency fund.
The firm’s Millennials & Investing survey, released Wednesday, reported that nearly two-thirds of millennials – classified as those between the ages of 25 and 35 – were encouraged to save by their parents. Half of those in the survey said their family were good role models for money management and “even fewer” said their parents showed them how to “grow wealth beyond having a job.”
“It’s no secret that our attitudes toward money are likely influenced by how much financial education we received as children and the types of role models we have in our immediate family,” said Rich Ramassini, vice president and director of strategy and sales performance for PNC Investments, in a release. “However, this survey finds that millennials’ financial education largely skewed toward savings instead of investing. When it comes to building wealth over the long-term, investing is a critical component of a portfolio and one that should not be ignored.”
While most millennials who responded said they talked with their parents about saving, there was a gap between younger millennials as 79% of those 25 to 29 said they did so, compared to 70% of those 30 to 35. Younger millenials, PNC Investments noted, were likely to be in high school during the Great Recession.
“The money mindset that millennials adopted during their childhood could derail their long-term financial goals,” Ramassini said.
About half of millennials say they expect to retire with financial stability, although most admitted to not having an understanding of how to invest their money.
“As this generation matures and acquires more wealth, it’s absolutely critical that they devise a comprehensive financial plan, which consists of an emergency fund, a mix of savings and investing and an intimate understanding of their future goals,” Ramassini said.
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